Sales Tax Bonds and Gross Weight Bond

signature-962355_960_720Sales Tax Bond is (Most of the time) a state mandated surety bond. It is a promise that the merchant will pay the sales taxes that they are responsible for to the state or federal government. A Sales Tax Bond is considered a type of financial guarantee surety bond, and failure to pay the required taxes or even incorrect reporting can result in a bond claim!

Texas Administrative Code Title 34, Part 1, Chapter 3 says that certain retailers and sellers in the state may be required to obtain a Texas sales tax surety bond, and guarantees that bonded sellers will make sure they follow the requirements of the Texas Comptroller and the Administrative Code. But just like other surety bonds, you will have to pay back the surety bond provider after they fix the situation!

If you are a trucker within the state of Texas you are also probably familiar with Gross Weight Bonds and Section 623.011 of the Texas Transportation Code (Yes, I looked up all these laws!)—which is a pledge to make payment via surety bond to the Texas Department of Transportation and to the counties for any and all damages that may be sustained to any Texas highway!

With this type of permit, in a vehicle and trailer you may exceed the allowable axle truck-2920533_960_720weight by a tolerance of 10% and may exceed the gross weight by a tolerance of 5%! But, in order to get this permit—you will be required to get a Gross Weight Bond to pay the state just in case any damage is created to the roads! It is a great way to make sure that you can cover any damage if you are carrying an oversized load, but remember it works like a normal surety bond and the amount must be paid back to the company!

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